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AI startup Cursor raises $2.3 billion, reaching a valuation of $29.3 billion.
According to Golden Finance, the Wall Street Journal reported that the artificial intelligence startup Cursor (which helps engineers write code) raised $2.3 billion in a new funding round, bringing the company’s valuation to $29.3 billion. Cursor can analyze programmers' actions and suggest the next few lines of code. It also provides a chatbot where users can ask questions related to code. This valuation is remarkable for a startup that was valued at less than $10 billion just a few months ago, highlighting investors' sustained and strong interest in all things AI-related. Advances in generative AI have driven valuations of a whole generation of coding companies utilizing this technology, such as Replit, Sweden's Lovable, and Cognition. However, the challenge they face, like many AI products, is cost. AI coding companies must pay to build or access AI models to support their applications.

